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The pledge tracker

Here's a list of companies in which promoter pledging has shown a marked rise or fall between December 2017 and March 2018


Promoter pledging is an important analytical parameter. When promoters pledge shares, they keep shares as collateral with a financial institution, such as a bank, to raise money. It's just like mortgaging something for money. Later you pay the loan back and get your thing released.

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Pledging is not always bad. Many times promoters pledge their stake for sound business reasons and later release their pledged shares. But pledging takes an ugly turn when the pledged stake is high and the promoter is unable to pay back the dues. This may force the financing institution to sell the pledged stake, which can result in a sudden fall in the stock price.

Generally speaking, a high pledged stake also indicates a bad management. Investors should stay away from companies that have high levels of pledging.

The first table below mentions companies in which pledging has gone up by 10 per cent or more in the last quarter and the pledged stake is now at least 25 per cent. The second table mentions companies in which pledging has gone down by at least 10 per cent.

Increase in pledging

Company Industry M-Cap
(Rs cr)
Pledged stake Promoter stake (%)
Mar-18 Dec-17 Increase (%)
Lanco Infratech Engineering - Construction 249 94.51 0 94.51 58.51
Andhra Cements Cement & Construction Materials 263 75 7.5 67.5 68.79
Ramky Infrastructure Engineering - Construction 1,027 89.16 46.16 43 67.76
Riddhi Siddhi Gluco Biols Trading 431 40.05 0 40.05 74.82
Him Teknoforge Auto Ancillary 149 36.11 0 36.11 54.83
Tilaknagar Industries Breweries & Distilleries 200 91.22 62.05 29.17 54.96
Rubfila International Rubber Products 293 28.52 0 28.52 62.13
Bharat Wire Ropes Metal - Non Ferrous 438 27.65 0 27.65 40.23
Prakash Industries Steel & Iron Products 2,276 77.08 52.96 24.12 39.66
Elecon Engineering Company Engineering - Industrial Equipments 636 60.95 37.01 23.94 58.64
CMI Cable 342 23.3 0 23.3 43.55
Kwality Consumer Food 524 79.01 61.91 17.1 54.76
Prabhat Dairy Consumer Food 1,239 46.06 29.71 16.35 50.1
Kamat Hotels (India) Hotel, Resort & Restaurants 164 92.42 77.19 15.23 60.9
Zee Learn Educational Institutions 1,140 82.93 67.91 15.02 57.55
Gopala Polyplast Plastic Products 105 43.51 28.95 14.56 36.7
Zee Media Corporation TV Broadcasting & Software Production 1,189 51.02 38.05 12.97 69.11
Bhushan Steel Steel & Iron Products 3,051 83.6 71.13 12.47 43.9
Centrum Capital Finance - Investment 2,286 48.4 36.19 12.21 37.08
Emami Household & Personal Products 23,655 39.87 29.07 10.8 72.74
SPML Infra Engineering - Construction 346 89.8 79.2 10.6 38.2
Granules India Pharmaceuticals & Drugs 2,035 41.73 31.55 10.18 44.94

 

Decrease in pledging

Company Industry M-Cap
(Rs cr)
Pledged stake Promoter stake (%)
Mar-18 Dec-17 Decrease (%)
MT Educare Educational Institutions 380 0 64.57 -64.57 23.73
MSP Steel & Power Steel & Iron Products 51 39.49 99.09 -59.6 41.62
Bhansali Engineering Polymers Chemicals 2,333 0 55.1 -55.1 55
Uniply Industries Wood & Wood Products 1,092 38.42 83.86 -45.44 33.42
Scanpoint Geomatics Photographic Products 114 41.13 75.92 -34.79 33.71
Mangalam Drugs & Organics Pharmaceuticals & Drugs 151 11.65 42.78 -31.13 50.76
Rajapalayam Mills Textile - Spinning 687 0 28.05 -28.05 53.17
Nath Bio-Genes (India) Agriculture 834 58.6 83.7 -25.1 40.69
Mangalore Chemicals & Fertilizers Fertilizers 680 29.58 53.48 -23.9 75
Shree Renuka Sugars Sugar 2,452 24.71 47.84 -23.13 52
Shivalik Rasayan Pesticides & Agrochemicals 331 0 19.16 -19.16 61.67
Aban Offshore Oil Exploration 679 4.47 21.6 -17.13 46
Rajratan Global Wire Steel & Iron Products 256 0 16.41 -16.41 63.5
Setco Automotive Auto Ancillary 558 38.68 54.66 -15.98 63.54
Man Industries (India) Castings/Forgings 636 26.74 41.49 -14.75 44.16
Jubilant Life Sciences Chemicals 11,098 5.47 19.21 -13.74 50.68
Surya Roshni Diversified 1,655 23.83 35.68 -11.85 62.9
Jindal Worldwide Textile 2,163 22.64 34.11 -11.47 61.15
Sunil Hitech Engineers Engineering - Construction 141 24.8 35.43 -10.63 39.87
Mcnally Bharat Engineering Company Engineering - Construction 571 12.43 22.77 -10.34 44.8
Market cap data as on July 3, 2018.

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